[October 24, 2014] |
|
Bristol-Myers Squibb Reports Third Quarter 2014 Financial Results
NEW YORK --(Business Wire)--
Bristol-Myers
Squibb Company (NYSE:BMY) today reported strong financial results
for the third quarter of 2014, adjusted 2014 GAAP guidance and confirmed
2014 non-GAAP guidance. The quarter was highlighted by strong
performance by key brands, significant data and regulatory milestones
for Opdivo, the launch of the company's hepatitis C regimens in
Japan and Europe and the completion of several business development
transactions supporting the company's oncology portfolio.
"Our financial results in the third quarter reflect our continued focus
on balancing long-term growth with short-term performance, as we
achieved significant progress in our pipeline and saw strong in-market
performance for key products including Eliquis, Yervoy, Sprycel and
Orencia," said Lamberto
Andreotti, chief executive officer, Bristol-Myers Squibb. "We
continue to build a solid foundation for our future as a Diversified
Specialty BioPharma by advancing our own R&D efforts and investing in
strategic business development to build a sustainable pipeline."
|
|
|
|
|
|
|
|
|
|
Third Quarter
|
|
$ amounts in millions, except per share amounts
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2014
|
|
|
2013
|
|
|
Change
|
|
Total Revenues
|
|
|
|
$3,921
|
|
|
$4,065
|
|
|
(4)%
|
|
GAAP Diluted EPS
|
|
|
|
0.43
|
|
|
0.42
|
|
|
2%
|
|
Non-GAAP Diluted EPS
|
|
|
|
0.45
|
|
|
0.46
|
|
|
(2)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
THIRD QUARTER FINANCIAL RESULTS
-
Bristol-Myers Squibb posted third quarter 2014 revenues of $3.9
billion, a decrease of 4% compared to the same period a year ago.
Excluding the divested Diabetes Alliance, global revenues increased 7%.
-
U.S. revenues decreased 3% to $2.0 billion in the quarter compared to
the same period a year ago. International revenues decreased 4%.
-
Gross margin as a percentage of revenues was 74.3% in the quarter
compared to 71.1% in the same period a year ago.
-
Marketing, selling and administrative expenses increased 5% to $1.0
billion in the quarter.
-
Advertising and product promotion spending decreased 12% to $171
million in the quarter.
-
Research and development expenses increased 10% to $983 million in the
quarter.
-
The effective tax rate on earnings before income taxes was 27.4% in
the quarter, compared to 15.4% in the third quarter last year.
-
The company reported net earnings attributable to Bristol-Myers Squibb
of $721 million, or $0.43 per share, in the quarter compared to $692
million, or $0.42 per share, a year ago.
-
The company reported non-GAAP net earnings attributable to
Bristol-Myers Squibb of $750 million, or $0.45 per share, in the third
quarter, compared to $768 million, or $0.46 per share, for the same
period in 2013. Among other specified items, the non-GAAP earnings in
the current period exclude a $0.07 per share impact of additional
charges related to the Branded Prescription Drug Fee resulting from
the issuance of final rules by the IRS. An overview of specified items
is discussed under the "Use of Non-GAAP Financial Information" section.
-
Cash, cash equivalents and marketable securities were $11.5 billion,
with a net cash position of $3.9 billion, as of September 30, 2014.
THIRD QUARTER PRODUCT AND PIPELINE UPDATE
Bristol-Myers Squibb's global sales in the third quarter included Eliquis,
which grew by $175 million, Yervoy, which grew 47%, Sprycel,
which grew 22%, Orencia, which grew 18%, and Daklinza and Sunvepra,
which had combined sales of $49 million.
Opdivo
-
In September, the company announced multiple regulatory milestones for Opdivo
(nivolumab), an investigational PD-1 immune checkpoint inhibitor, in
the U.S. and European Union (EU):
-
In the U.S., the Food and Drug Administration (FDA) has accepted
for priority review the Biologics License Application for
previously treated advanced melanoma and set a Prescription Drug
User Fee Act decision goal date of March 30, 2015. The FDA granted Opdivo
Breakthrough Therapy designation for this indication.
Bristol-Myers Squibb has proposed the name Opdivo,
which, if approved by health authorities, will serve as the
trademark for nivolumab.
-
In the EU, the European Medicines Agency (EMA) has validated for
review the Marketing Authorization Applications for nivolumab in
non-small cell lung cancer (NSLC) - the first completed regulatory
submission for a PD-1 immune checkpoint inhibitor in this tumor
type - and in advanced melanoma. The application for advanced
melanoma was granted accelerated assessment by the EMA's Committee
for Medicinal Products for Human Use.
-
Also in September, at the European Society for Medical Oncology
Congress in Madrid, the company announced positive results from
CheckMate -037, a Phase III randomized, controlled open-label study of
Opdivo versus investigator's choice chemotherapy (ICC) in patients
with advanced melanoma who were previously treated with Yervoy. Based
on a planned interim analysis of the co-primary endpoint, the
objective response rate was 32% (95% CI = 24, 41) in the Opdivo
arm (n=120) and 11% (95% CI = 4, 23) in the ICC reference arm (n=47)
in patients with at least six months of follow up. The majority (95%)
of responses were ongoing in the Opdivo arm and the median
duration of response was not reached.
Eliquis
-
In August, the company and its partner, Pfizer, announced that the FDA
approved a Supplemental New Drug Application for Eliquis for
the treatment of deep vein thrombosis (DVT) and pulmonary embolism
(PE), and for the reduction in the risk of recurrent DVT and PE
following initial therapy.
-
In July, the company and its partner, Pfizer, announced that the
European Commission (EC) approved Eliquis for the treatment of
DVT and PE, and the prevention of DVT and PE in adults. The approval
applies to all EU member states as well as Iceland and Norway.
-
In August, at the European Society of Cardiology Congress in
Barcelona, Spain, the company and its partner, Pfizer, announced
results of a pre-specified secondary analysis of the Eliquis Phase
III AMPLIFY-EXT trial. The analysis evaluated clinical and demographic
predictors of all-cause hospitalization in patients with VTE. Results
from this analysis demonstrated that during the 12-month extended
treatment of VTE, Eliquis significantly reduced the risk of
hospitalization versus placebo. This effect was independent of other
variables including renal function, the only other significant
predictor of hospitalization in the AMPLIFY-EXT population.
Daklinza
-
In August, the company announced that the EC approved Daklinza
(daclatasvir), a potent, pan-genotypic NS5A replication complex
inhibitor (in vitro), for use in combination with other medicinal
products across genotypes 1, 2, 3 and 4 for the treatment of chronic
hepatitis C virus (HCV) infection in adults. The approval allows for
the marketing of Daklinza in all 28 EU member states.
Asunaprevir
-
In October, the company announced that it will not pursue FDA approval
of the dual regimen of daclatasvir and asunaprevir for the treatment
of HCV genotype 1b patients in the U.S. and has withdrawn its New Drug
Application for asunaprevir, an NS3/4A protease inhibitor. The company
will continue to pursue FDA approval for daclatasvir, which is
currently being investigated globally in multiple treatment regimens
for HCV patients with high unmet needs.
Sustiva
-
In October, the company announced that it has successfully resolved
all outstanding U.S. patent litigation relating to efavirenz, an
active ingredient contained in our Sustiva (efavirenz) and Atripla
(efavirenz/emtricitabine/tenofovir disoproxil fumarate) products,
and that loss of patent exclusivity in the U.S. for efavirenz is not
expected to occur until December 2017.
THIRD QUARTER FINANCIAL UPDATE
In September, the company announced that it will settle $1.4 billion in
pension obligations through the purchase of a group annuity contract
from The Prudential Insurance Company of America (Prudential) for
approximately 8,000 U.S. retirees and their beneficiaries who started
receiving their monthly retirement benefit payments on or before June 1,
2014. The transaction reduces risk in the retirement plan and better
manages the ongoing variations in cost associated with its maintenance
while entrusting current retirees and their beneficiaries' pensions to a
financial institution with expertise in the long-term management of
retirement benefits. The transaction with Prudential is expected to
occur in December 2014 and is subject to satisfaction of closing
conditions.
THIRD QUARTER BUSINESS DEVELOPMENT UPDATE
-
In October, the company announced a clinical trial collaboration
agreement with Janssen and Pharmacyclics to evaluate the safety,
tolerability and preliminary efficacy of Opdivo in combination
with Janssen and Pharmacyclics' oral Bruton's tyrosine kinase
inhibitor Imbruvica® (ibrutinib) to treat patients with
non-Hodgkin lymphoma.
-
In October, the company and The University of Texas MD Anderson Cancer
Center announced a clinical research collaboration to evaluate Yervoy,
Opdivo and three early-stage clinical immuno-oncology assets as
potential treatment options for acute and chronic leukemia as well as
other hematologic malignancies.
-
In October, the company announced a clinical trial collaboration with
Novartis to evaluate the safety, tolerability and preliminary efficacy
of combining Opdivo with three molecularly targeted oncology
therapies from Novartis - Zykadia™ (ceritinib), INC280 and
EGF816 - to treat NSLC.
-
In August, the company and Celgene Corporation announced the
establishment of a clinical trial collaboration to evaluate the
safety, tolerability and preliminary efficacy of a combination regimen
of Opdivo and Celgene's nab® technology-based
chemotherapy Abraxane® (paclitaxel protein-bound particles
for injectable suspension) (albumin-bound) in a Phase I study.
Multiple tumor types will be explored in the study.
-
In August, the company and Allied Minds announced the formation of
Allied-Bristol Life Sciences LLC, a new jointly owned enterprise
created to identify and foster research and pre-clinical development
of biopharmaceutical innovations from leading university research
institutions across the U.S. The new enterprise will focus on
converting discoveries from university research institutions into
therapeutic candidates for clinical development and, ultimately,
approved therapies that address serious diseases.
Abraxane® and nab® are trademarks of Abraxis
BioScience LLC, a wholly owned subsidiary of Celgene Corporation. Imbruvica®
is a trademark of Pharmacyclics, Inc. Zykadia™ is a
trademark of Novartis AG.
2014 FINANCIAL GUIDANCE
Bristol-Myers Squibb is adjusting its 2014 GAAP EPS guidance range to
$1.15 - $1.25 from $1.50 - $1.60 and confirming its non-GAAP EPS
guidance range of $1.70 - $1.80. Both GAAP and non-GAAP guidance assume
current exchange rates and that the R&D tax credit will be extended by
Congress in 2014. Key 2014 non-GAAP guidance assumptions include:
|
|
|
|
|
|
•
|
|
|
|
Worldwide revenues between $15.2 billion and $15.8 billion.
|
|
|
|
|
|
|
|
•
|
|
|
|
Full-year gross margin as a percentage of revenues between 75% and
76%.
|
|
|
|
|
|
|
|
•
|
|
|
|
Advertising and promotion expense decreasing in the mid-teen-digit
range.
|
|
|
|
|
|
|
|
•
|
|
|
|
Marketing, sales and administrative expenses decreasing in the
mid-single-digit range.
|
|
|
|
|
|
|
|
•
|
|
|
|
Research and development expenses growing in the mid-single-digit
range.
|
|
|
|
|
|
|
|
•
|
|
|
|
An effective tax rate of 19% - 20%.
|
|
|
|
|
|
|
|
The financial guidance for 2014 excludes the impact of any potential
future strategic acquisitions and divestitures, and any specified items
that have not yet been identified and quantified. The non-GAAP 2014
guidance also excludes other specified items as discussed under "Use of
Non-GAAP Financial Information." Details reconciling adjusted non-GAAP
amounts with the amounts reflecting specified items are provided in
supplemental materials available on the company's website.
Use of Non-GAAP Financial Information
This press release contains non-GAAP financial measures, including
non-GAAP earnings and related earnings per share information. These
measures are adjusted to exclude certain costs, expenses, significant
gains and losses and other specified items. Among the items in GAAP
measures but excluded for purposes of determining adjusted earnings and
other adjusted measures are: restructuring and other exit costs;
accelerated depreciation charges; IPRD and asset impairments; charges
and recoveries relating to significant legal proceedings; upfront,
milestone and other payments for in-licensing of products that have not
achieved regulatory approval which are immediately expensed; net
amortization of acquired intangible assets and deferred income related
to Amylin; pension settlement charges; significant tax events and
additional charges related to the Branded Prescription Drug Fee. This
information is intended to enhance an investor's overall understanding
of the company's past financial performance and prospects for the
future. Non-GAAP financial measures provide the company and its
investors with an indication of the company's baseline performance
before items that are considered by the company not to be reflective of
the company's ongoing results. The company uses non-GAAP gross profit,
non-GAAP marketing, selling and administrative expense, non-GAAP
research and development expense, and non-GAAP other income and expense
measures to set internal budgets, manage costs, allocate resources, and
plan and forecast future periods. Non-GAAP effective tax rate measures
are primarily used to plan and forecast future periods. Non-GAAP
earnings and earnings per share measures are primary indicators the
company uses as a basis for evaluating company performance, setting
incentive compensation targets, and planning and forecasting of future
periods. This information is not intended to be considered in isolation
or as a substitute for financial measures prepared in accordance with
GAAP.
Statement on Cautionary Factors
This press release contains certain forward-looking statements within
the meaning of the Private Securities Litigation Reform Act of 1995
regarding, among other things, statements relating to goals, plans and
projections regarding the company's financial position, results of
operations, market position, product development and business strategy.
These statements may be identified by the fact that they use words such
as "anticipate", "estimates", "should", "expect", "guidance", "project",
"intend", "plan", "believe" and other words and terms of similar meaning
in connection with any discussion of future operating or financial
performance. Such forward-looking statements are based on current
expectations and involve inherent risks and uncertainties, including
factors that could delay, divert or change any of them, and could cause
actual outcomes and results to differ materially from current
expectations. These factors include, among other things, effects of the
continuing implementation of governmental laws and regulations related
to Medicare, Medicaid, Medicaid managed care organizations and entities
under the Public Health Service 340B program, pharmaceutical rebates and
reimbursement, market factors, competitive product development and
approvals, pricing controls and pressures (including changes in rules
and practices of managed care groups and institutional and governmental
purchasers), economic conditions such as interest rate and currency
exchange rate fluctuations, judicial decisions, claims and concerns that
may arise regarding the safety and efficacy of in-line products and
product candidates, changes to wholesaler inventory levels, variability
in data provided by third parties, changes in, and interpretation of,
governmental regulations and legislation affecting domestic or foreign
operations, including tax obligations, changes to business or tax
planning strategies which take into account assumptions about the
continued extension of the R&D tax credit, difficulties and delays in
product development, manufacturing or sales including any potential
future recalls, patent positions and the ultimate outcome of any
litigation matter. These factors also include the company's ability to
execute successfully its strategic plans, including its business
strategy, the expiration of patents or data protection on certain
products, including assumptions about the company's ability to retain
patent exclusivity of certain products, and the impact and result of
governmental investigations. There can be no guarantees with respect to
pipeline products that future clinical studies will support the data
described in this release, that the compounds will receive necessary
regulatory approvals, or that they will prove to be commercially
successful; nor are there guarantees that regulatory approvals will be
sought, or sought within currently expected timeframes, or that
contractual milestones will be achieved. For further details and a
discussion of these and other risks and uncertainties, see the company's
periodic reports, including the annual report on Form 10-K, quarterly
reports on Form 10-Q and current reports on Form 8-K, filed with or
furnished to the Securities and Exchange Commission. The company
undertakes no obligation to publicly update any forward-looking
statement, whether as a result of new information, future events or
otherwise.
Company and Conference Call Information
Bristol-Myers Squibb is a global biopharmaceutical company whose mission
is to discover, develop and deliver innovative medicines that help
patients prevail over serious diseases. For more information, please
visit www.bms.com
or follow us on Twitter at http://twitter.com/bmsnews.
There will be a conference call on October 24, 2014, at 10:30 a.m. EDT
during which company executives will review financial information and
address inquiries from investors and analysts. Investors and the general
public are invited to listen to a live webcast of the call at http://investor.bms.com
or by dialing 913-312-0964, confirmation code: 1193919. Materials
related to the call will be available at the same website prior to the
conference call.
|
|
|
|
|
|
|
|
|
|
|
BRISTOL-MYERS SQUIBB COMPANY
|
|
|
SELECTED PRODUCTS
|
|
|
FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2014 AND 2013
|
|
|
(Unaudited, dollars in millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Worldwide Revenues
|
|
|
|
U.S. Revenues
|
|
|
|
|
|
|
2014
|
|
|
2013
|
|
|
% Change
|
|
|
|
2014
|
|
|
2013
|
|
|
% Change
|
|
|
Three Months Ended September 30,
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Key Products
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Virology
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Baraclude
|
|
|
|
$
|
|
|
325
|
|
|
|
$
|
|
|
378
|
|
|
|
(14)
|
%
|
|
|
|
$
|
|
|
40
|
|
|
|
$
|
|
|
67
|
|
|
|
(40)
|
%
|
|
|
Hepatitis C Franchise
|
|
|
|
49
|
|
|
|
-
|
|
|
|
N/A
|
|
|
|
-
|
|
|
|
-
|
|
|
|
N/A
|
|
|
Reyataz
|
|
|
|
338
|
|
|
|
375
|
|
|
|
(10)
|
%
|
|
|
|
169
|
|
|
|
189
|
|
|
|
(11)
|
%
|
|
|
Sustiva Franchise
|
|
|
|
357
|
|
|
|
389
|
|
|
|
(8)
|
%
|
|
|
|
284
|
|
|
|
259
|
|
|
|
10
|
%
|
|
|
Oncology
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Erbitux(a)
|
|
|
|
187
|
|
|
|
183
|
|
|
|
2
|
%
|
|
|
|
175
|
|
|
|
180
|
|
|
|
(3)
|
%
|
|
|
Opdivo
|
|
|
|
1
|
|
|
|
-
|
|
|
|
N/A
|
|
|
|
-
|
|
|
|
-
|
|
|
|
N/A
|
|
|
Sprycel
|
|
|
|
385
|
|
|
|
316
|
|
|
|
22
|
%
|
|
|
|
179
|
|
|
|
134
|
|
|
|
34
|
%
|
|
|
Yervoy
|
|
|
|
350
|
|
|
|
238
|
|
|
|
47
|
%
|
|
|
|
191
|
|
|
|
130
|
|
|
|
47
|
%
|
|
|
Neuroscience
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Abilify(b)
|
|
|
|
449
|
|
|
|
569
|
|
|
|
(21)
|
%
|
|
|
|
407
|
|
|
|
378
|
|
|
|
8
|
%
|
|
|
Immunoscience
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Orencia
|
|
|
|
444
|
|
|
|
375
|
|
|
|
18
|
%
|
|
|
|
292
|
|
|
|
246
|
|
|
|
19
|
%
|
|
|
Cardiovascular
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Eliquis
|
|
|
|
216
|
|
|
|
41
|
|
|
|
**
|
|
|
|
113
|
|
|
|
27
|
|
|
|
**
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diabetes Alliance
|
|
|
|
42
|
|
|
|
432
|
|
|
|
(90)
|
%
|
|
|
|
-
|
|
|
|
308
|
|
|
|
(100)
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mature Products and All Other
|
|
|
|
778
|
|
|
|
769
|
|
|
|
1
|
%
|
|
|
|
118
|
|
|
|
119
|
|
|
|
(1)
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
|
|
3,921
|
|
|
|
4,065
|
|
|
|
(4)
|
%
|
|
|
|
1,968
|
|
|
|
2,037
|
|
|
|
(3)
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Excluding Diabetes Alliance
|
|
|
|
3,879
|
|
|
|
3,633
|
|
|
|
7
|
%
|
|
|
|
1,968
|
|
|
|
1,729
|
|
|
|
14
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
**
|
|
|
|
In excess of 100%
|
|
|
|
|
|
(a)
|
|
|
|
Erbitux is a trademark of ImClone LLC. ImClone LLC is a
wholly-owned subsidiary of Eli Lilly and Company.
|
(b)
|
|
|
|
Abilify is a trademark of Otsuka Pharmaceutical Co., Ltd.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BRISTOL-MYERS SQUIBB COMPANY
|
|
|
SELECTED PRODUCTS
|
|
|
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2014
|
|
|
AND 2013
|
|
|
(Unaudited, dollars in millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Worldwide Revenues
|
|
|
|
U.S. Revenues
|
|
|
|
|
|
|
2014
|
|
|
2013
|
|
|
% Change
|
|
|
|
2014
|
|
|
2013
|
|
|
% Change
|
|
|
Nine Months Ended September 30,
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Key Products
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Virology
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Baraclude
|
|
|
|
$
|
|
|
1,100
|
|
|
|
$
|
|
|
1,115
|
|
|
|
(1)
|
%
|
|
|
|
$
|
|
|
194
|
|
|
|
$
|
|
|
208
|
|
|
|
(7)
|
%
|
|
|
Hepatitis C Franchise
|
|
|
|
49
|
|
|
|
-
|
|
|
|
N/A
|
|
|
|
-
|
|
|
|
-
|
|
|
|
N/A
|
|
|
Reyataz
|
|
|
|
1,044
|
|
|
|
1,167
|
|
|
|
(11)
|
%
|
|
|
|
513
|
|
|
|
582
|
|
|
|
(12)
|
%
|
|
|
Sustiva Franchise
|
|
|
|
1,037
|
|
|
|
1,187
|
|
|
|
(13)
|
%
|
|
|
|
778
|
|
|
|
785
|
|
|
|
(1)
|
%
|
|
|
Oncology
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Erbitux
|
|
|
|
542
|
|
|
|
516
|
|
|
|
5
|
%
|
|
|
|
511
|
|
|
|
506
|
|
|
|
1
|
%
|
|
|
Opdivo
|
|
|
|
1
|
|
|
|
-
|
|
|
|
N/A
|
|
|
|
-
|
|
|
|
-
|
|
|
|
N/A
|
|
|
Sprycel
|
|
|
|
1,095
|
|
|
|
915
|
|
|
|
20
|
%
|
|
|
|
487
|
|
|
|
384
|
|
|
|
27
|
%
|
|
|
Yervoy
|
|
|
|
942
|
|
|
|
700
|
|
|
|
35
|
%
|
|
|
|
510
|
|
|
|
429
|
|
|
|
19
|
%
|
|
|
Neuroscience
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Abilify
|
|
|
|
1,544
|
|
|
|
1,654
|
|
|
|
(7)
|
%
|
|
|
|
1,149
|
|
|
|
1,084
|
|
|
|
6
|
%
|
|
|
Immunoscience
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Orencia
|
|
|
|
1,209
|
|
|
|
1,047
|
|
|
|
15
|
%
|
|
|
|
775
|
|
|
|
698
|
|
|
|
11
|
%
|
|
|
Cardiovascular
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Eliquis
|
|
|
|
493
|
|
|
|
75
|
|
|
|
**
|
|
|
|
268
|
|
|
|
49
|
|
|
|
**
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diabetes Alliance
|
|
|
|
248
|
|
|
|
1,228
|
|
|
|
(80)
|
%
|
|
|
|
114
|
|
|
|
920
|
|
|
|
(88)
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mature Products and All Other
|
|
|
|
2,317
|
|
|
|
2,340
|
|
|
|
(1)
|
%
|
|
|
|
335
|
|
|
|
408
|
|
|
|
(18)
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
|
|
11,621
|
|
|
|
11,944
|
|
|
|
(3)
|
%
|
|
|
|
5,634
|
|
|
|
6,053
|
|
|
|
(7)
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Excluding Diabetes Alliance
|
|
|
|
11,373
|
|
|
|
10,716
|
|
|
|
6
|
%
|
|
|
|
5,520
|
|
|
|
5,133
|
|
|
|
8
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BRISTOL-MYERS SQUIBB COMPANY
|
|
|
CONSOLIDATED STATEMENTS OF EARNINGS
|
|
|
FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2014 AND 2013
|
|
|
(Unaudited, dollars and shares in millions except per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended September 30,
|
|
|
|
Nine Months Ended September 30,
|
|
|
|
|
|
|
2014
|
|
|
|
2013
|
|
|
|
|
2014
|
|
|
|
2013
|
|
|
|
Net product sales
|
|
|
|
$
|
|
2,843
|
|
|
|
$
|
|
3,025
|
|
|
|
|
$
|
|
8,420
|
|
|
|
$
|
|
9,006
|
|
|
|
Alliance and other revenues
|
|
|
|
1,078
|
|
|
|
1,040
|
|
|
|
|
3,201
|
|
|
|
2,938
|
|
|
|
Total Revenues
|
|
|
|
3,921
|
|
|
|
4,065
|
|
|
|
|
11,621
|
|
|
|
11,944
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of products sold
|
|
|
|
1,007
|
|
|
|
1,175
|
|
|
|
|
2,966
|
|
|
|
3,346
|
|
|
|
Marketing, selling and administrative
|
|
|
|
1,029
|
|
|
|
980
|
|
|
|
|
2,937
|
|
|
|
3,016
|
|
|
|
Advertising and product promotion
|
|
|
|
171
|
|
|
|
194
|
|
|
|
|
521
|
|
|
|
601
|
|
|
|
Research and development
|
|
|
|
983
|
|
|
|
893
|
|
|
|
|
3,345
|
|
|
|
2,774
|
|
|
|
Other (income)/expense
|
|
|
|
(277
|
)
|
|
|
5
|
|
|
|
|
(589
|
)
|
|
|
185
|
|
|
|
Total Expenses
|
|
|
|
2,913
|
|
|
|
3,247
|
|
|
|
|
9,180
|
|
|
|
9,922
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings Before Income Taxes
|
|
|
|
1,008
|
|
|
|
818
|
|
|
|
|
2,441
|
|
|
|
2,022
|
|
|
|
Provision for Income Taxes
|
|
|
|
276
|
|
|
|
126
|
|
|
|
|
439
|
|
|
|
177
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Earnings
|
|
|
|
732
|
|
|
|
692
|
|
|
|
|
2,002
|
|
|
|
1,845
|
|
|
|
Net Earnings Attributable to Noncontrolling Interest
|
|
|
|
11
|
|
|
|
-
|
|
|
|
|
11
|
|
|
|
8
|
|
|
|
Net Earnings Attributable to BMS
|
|
|
|
$
|
|
721
|
|
|
|
$
|
|
692
|
|
|
|
|
$
|
|
1,991
|
|
|
|
$
|
|
1,837
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per Common Share
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
|
$
|
|
0.43
|
|
|
|
$
|
|
0.42
|
|
|
|
|
$
|
|
1.20
|
|
|
|
$
|
|
1.12
|
|
|
|
Diluted
|
|
|
|
$
|
|
0.43
|
|
|
|
$
|
|
0.42
|
|
|
|
|
$
|
|
1.19
|
|
|
|
$
|
|
1.11
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average Common Shares Outstanding:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
|
1,658
|
|
|
|
1,646
|
|
|
|
|
1,656
|
|
|
|
1,643
|
|
|
|
Diluted
|
|
|
|
1,670
|
|
|
|
1,662
|
|
|
|
|
1,668
|
|
|
|
1,659
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other (Income)/Expense
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense
|
|
|
|
$
|
|
50
|
|
|
|
$
|
|
46
|
|
|
|
|
$
|
|
150
|
|
|
|
$
|
|
146
|
|
|
|
Investment income
|
|
|
|
(20
|
)
|
|
|
(23
|
)
|
|
|
|
(71
|
)
|
|
|
(76
|
)
|
|
|
Provision for restructuring
|
|
|
|
35
|
|
|
|
6
|
|
|
|
|
72
|
|
|
|
212
|
|
|
|
Litigation charges/(recoveries)
|
|
|
|
10
|
|
|
|
17
|
|
|
|
|
19
|
|
|
|
(5
|
)
|
|
|
Equity in net income of affiliates
|
|
|
|
(12
|
)
|
|
|
(42
|
)
|
|
|
|
(81
|
)
|
|
|
(128
|
)
|
|
|
Out-licensed intangible asset impairment
|
|
|
|
18
|
|
|
|
-
|
|
|
|
|
18
|
|
|
|
-
|
|
|
|
Gain on sale of product lines, businesses and assets
|
|
|
|
(315
|
)
|
|
|
-
|
|
|
|
|
(567
|
)
|
|
|
(1
|
)
|
|
|
Other alliance and licensing income
|
|
|
|
(102
|
)
|
|
|
(31
|
)
|
|
|
|
(354
|
)
|
|
|
(120
|
)
|
|
|
Pension curtailments, settlements and special termination benefits
|
|
|
|
28
|
|
|
|
37
|
|
|
|
|
137
|
|
|
|
138
|
|
|
|
Other
|
|
|
|
31
|
|
|
|
(5
|
)
|
|
|
|
88
|
|
|
|
19
|
|
|
|
Other (income)/expense
|
|
|
|
$
|
|
(277
|
)
|
|
|
$
|
|
5
|
|
|
|
|
$
|
|
(589
|
)
|
|
|
$
|
|
185
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BRISTOL-MYERS SQUIBB COMPANY
|
|
|
SPECIFIED ITEMS
|
|
|
FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2014 AND 2013
|
|
|
(Unaudited, dollars in millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended September 30,
|
|
|
|
Nine Months Ended September 30,
|
|
|
|
|
|
|
2014
|
|
|
2013
|
|
|
|
2014
|
|
|
2013
|
|
|
Accelerated depreciation, asset impairment and other shutdown costs
|
|
|
|
$
|
|
|
36
|
|
|
|
$
|
|
|
-
|
|
|
|
|
$
|
|
|
120
|
|
|
|
$
|
|
|
-
|
|
|
|
Amortization of acquired Amylin intangible assets
|
|
|
|
-
|
|
|
|
137
|
|
|
|
|
-
|
|
|
|
412
|
|
|
|
Amortization of Amylin alliance proceeds
|
|
|
|
-
|
|
|
|
(68
|
)
|
|
|
|
-
|
|
|
|
(202
|
)
|
|
|
Amortization of Amylin inventory adjustment
|
|
|
|
-
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
14
|
|
|
|
Cost of products sold
|
|
|
|
36
|
|
|
|
69
|
|
|
|
|
120
|
|
|
|
224
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Additional year of Branded Prescription Drug Fee
|
|
|
|
96
|
|
|
|
-
|
|
|
|
|
96
|
|
|
|
-
|
|
|
|
Process standardization implementation costs
|
|
|
|
2
|
|
|
|
4
|
|
|
|
|
8
|
|
|
|
6
|
|
|
|
Marketing, selling and administrative
|
|
|
|
98
|
|
|
|
4
|
|
|
|
|
104
|
|
|
|
6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Upfront, milestone and other payments
|
|
|
|
65
|
|
|
|
-
|
|
|
|
|
228
|
|
|
|
-
|
|
|
|
IPRD impairments
|
|
|
|
-
|
|
|
|
-
|
|
|
|
|
343
|
|
|
|
-
|
|
|
|
Research and development
|
|
|
|
65
|
|
|
|
-
|
|
|
|
|
571
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Provision for restructuring
|
|
|
|
35
|
|
|
|
6
|
|
|
|
|
72
|
|
|
|
212
|
|
|
|
Gain on sale of product lines, businesses and assets
|
|
|
|
(315
|
)
|
|
|
-
|
|
|
|
|
(562
|
)
|
|
|
-
|
|
|
|
Pension curtailments, settlements and special termination benefits
|
|
|
|
28
|
|
|
|
37
|
|
|
|
|
137
|
|
|
|
136
|
|
|
|
Acquisition and alliance related items(a)
|
|
|
|
39
|
|
|
|
-
|
|
|
|
|
72
|
|
|
|
(10
|
)
|
|
|
Litigation charges/(recoveries)
|
|
|
|
10
|
|
|
|
-
|
|
|
|
|
12
|
|
|
|
(23
|
)
|
|
|
Loss on debt redemption
|
|
|
|
-
|
|
|
|
-
|
|
|
|
|
45
|
|
|
|
-
|
|
|
|
Upfront, milestone and other licensing receipts
|
|
|
|
-
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
(14
|
)
|
|
|
Other (income)/expense
|
|
|
|
(203
|
)
|
|
|
43
|
|
|
|
|
(224
|
)
|
|
|
301
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Increase/(decrease) to pretax income
|
|
|
|
(4
|
)
|
|
|
116
|
|
|
|
|
571
|
|
|
|
531
|
|
|
|
Income tax on items above
|
|
|
|
33
|
|
|
|
(40
|
)
|
|
|
|
(248
|
)
|
|
|
(191
|
)
|
|
|
Increase to net earnings
|
|
|
|
$
|
|
|
29
|
|
|
|
$
|
|
|
76
|
|
|
|
|
$
|
|
|
323
|
|
|
|
$
|
|
|
340
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a) Includes $16 million of additional year of Branded Prescription
Drug Fee.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BRISTOL-MYERS SQUIBB COMPANY
|
|
|
RECONCILIATION OF CERTAIN NON-GAAP LINE ITEMS TO CERTAIN GAAP LINE
ITEMS
|
|
|
FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2014 AND 2013
|
|
|
(Unaudited, dollars in millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended September 30, 2014
|
|
|
|
GAAP
|
|
|
Specified Items*
|
|
|
Non GAAP
|
|
|
Gross Profit
|
|
|
|
$
|
|
|
2,914
|
|
|
|
$
|
|
|
36
|
|
|
|
|
$
|
|
|
2,950
|
|
|
|
|
Marketing, selling and administrative
|
|
|
|
1,029
|
|
|
|
(98
|
)
|
|
|
|
931
|
|
|
|
|
Research and development
|
|
|
|
983
|
|
|
|
(65
|
)
|
|
|
|
918
|
|
|
|
|
Other (income)/expense
|
|
|
|
(277
|
)
|
|
|
203
|
|
|
|
|
(74
|
)
|
|
|
|
Effective Tax Rate
|
|
|
|
27.4
|
%
|
|
|
(3.2
|
)
|
%
|
|
|
24.2
|
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended September 30, 2013
|
|
|
|
GAAP
|
|
|
Specified Items*
|
|
|
Non GAAP
|
|
|
Gross Profit
|
|
|
|
$
|
|
|
2,890
|
|
|
|
$
|
|
|
69
|
|
|
|
|
$
|
|
|
2,959
|
|
|
|
|
Marketing, selling and administrative
|
|
|
|
980
|
|
|
|
(4
|
)
|
|
|
|
976
|
|
|
|
|
Research and development
|
|
|
|
893
|
|
|
|
-
|
|
|
|
|
893
|
|
|
|
|
Other (income)/expense
|
|
|
|
5
|
|
|
|
(43
|
)
|
|
|
|
(38
|
)
|
|
|
|
Effective Tax Rate
|
|
|
|
15.4
|
%
|
|
|
2.4
|
|
%
|
|
|
17.8
|
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
*
|
|
|
Refer to the Specified Items schedule for further details. Effective
tax rate on the Specified Items represents the difference between
the GAAP and Non-GAAP effective tax rate.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BRISTOL-MYERS SQUIBB COMPANY
|
|
|
RECONCILIATION OF CERTAIN NON-GAAP LINE ITEMS TO CERTAIN GAAP LINE
ITEMS
|
|
|
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2014 AND 2013
|
|
|
(Unaudited, dollars in millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months Ended September 30, 2014
|
|
|
|
GAAP
|
|
|
Specified Items*
|
|
|
Non GAAP
|
|
|
Gross Profit
|
|
|
|
$
|
|
|
8,655
|
|
|
|
$
|
|
|
120
|
|
|
|
|
$
|
|
|
8,775
|
|
|
|
|
Marketing, selling and administrative
|
|
|
|
2,937
|
|
|
|
(104
|
)
|
|
|
|
2,833
|
|
|
|
|
Research and development
|
|
|
|
3,345
|
|
|
|
(571
|
)
|
|
|
|
2,774
|
|
|
|
|
Other (income)/expense
|
|
|
|
(589
|
)
|
|
|
224
|
|
|
|
|
(365
|
)
|
|
|
|
Effective Tax Rate
|
|
|
|
18.0
|
%
|
|
|
4.8
|
|
%
|
|
|
22.8
|
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months Ended September 30, 2013
|
|
|
|
GAAP
|
|
|
Specified Items*
|
|
|
Non GAAP
|
|
|
Gross Profit
|
|
|
|
$
|
|
|
8,598
|
|
|
|
$
|
|
|
224
|
|
|
|
|
$
|
|
|
8,822
|
|
|
|
|
Marketing, selling and administrative
|
|
|
|
3,016
|
|
|
|
(6
|
)
|
|
|
|
3,010
|
|
|
|
|
Research and development
|
|
|
|
2,774
|
|
|
|
-
|
|
|
|
|
2,774
|
|
|
|
|
Other (income)/expense
|
|
|
|
185
|
|
|
|
(301
|
)
|
|
|
|
(116
|
)
|
|
|
|
Effective Tax Rate
|
|
|
|
8.8
|
%
|
|
|
5.6
|
|
%
|
|
|
14.4
|
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
*
|
|
|
Refer to the Specified Items schedule for further details. Effective
tax rate on the Specified Items represents the difference between
the GAAP and Non-GAAP effective tax rate.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BRISTOL-MYERS SQUIBB COMPANY
|
|
|
RECONCILIATION OF NON-GAAP EPS TO GAAP EPS
|
|
|
FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2014 AND 2013
|
|
|
(Unaudited, dollars and shares in millions except per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended September 30,
|
|
|
|
Nine Months Ended September 30,
|
|
|
|
|
|
|
2014
|
|
|
2013
|
|
|
|
2014
|
|
|
2013
|
|
|
Net Earnings Attributable to BMS used for Diluted EPS Calculation -
GAAP
|
|
|
|
$
|
|
721
|
|
|
|
$
|
|
692
|
|
|
|
|
$
|
|
1,991
|
|
|
|
$
|
|
1,837
|
|
|
Less Specified Items*
|
|
|
|
29
|
|
|
|
76
|
|
|
|
|
323
|
|
|
|
340
|
|
|
Net Earnings used for Diluted EPS Calculation - Non-GAAP
|
|
|
|
$
|
|
750
|
|
|
|
$
|
|
768
|
|
|
|
|
$
|
|
2,314
|
|
|
|
$
|
|
2,177
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average Common Shares Outstanding - Diluted
|
|
|
|
1,670
|
|
|
|
1,662
|
|
|
|
|
1,668
|
|
|
|
1,659
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted Earnings Per Share - GAAP
|
|
|
|
$
|
|
0.43
|
|
|
|
$
|
|
0.42
|
|
|
|
|
$
|
|
1.19
|
|
|
|
$
|
|
1.11
|
|
|
Diluted EPS Attributable to Specified Items
|
|
|
|
0.02
|
|
|
|
0.04
|
|
|
|
|
0.20
|
|
|
|
0.20
|
|
|
Diluted Earnings Per Share - Non-GAAP
|
|
|
|
$
|
|
0.45
|
|
|
|
$
|
|
0.46
|
|
|
|
|
$
|
|
1.39
|
|
|
|
$
|
|
1.31
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
*
|
|
|
Refer to the Specified Items schedule for further details.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BRISTOL-MYERS SQUIBB COMPANY
|
|
|
NET CASH/(DEBT) CALCULATION
|
|
|
AS OF SEPTEMBER 30, 2014 AND JUNE 30, 2014
|
|
|
(Unaudited, dollars in millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
September 30, 2014
|
|
|
June 30, 2014
|
|
|
Cash and cash equivalents
|
|
|
|
$
|
4,851
|
|
|
|
$
|
4,282
|
|
|
|
Marketable securities - current
|
|
|
|
2,370
|
|
|
|
2,893
|
|
|
|
Marketable securities - long term
|
|
|
|
4,328
|
|
|
|
3,876
|
|
|
|
Cash, cash equivalents and marketable securities
|
|
|
|
11,549
|
|
|
|
11,051
|
|
|
|
Short-term borrowings and current portion of long-term debt
|
|
|
|
(401
|
)
|
|
|
(365
|
)
|
|
|
Long-term debt
|
|
|
|
(7,267
|
)
|
|
|
(7,372
|
)
|
|
|
Net cash position
|
|
|
|
$
|
3,881
|
|
|
|
$
|
3,314
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
[ Back To TMCnet.com's Homepage ]
|